Accounting Research Analysis and Reference Review

This assignment requires a thorough review of selected journal articles and book chapters related to accounting research. The provided references cover topics such as managerial overconfidence, audit fees, cost behavior, risk drivers, and social accounting. Students are expected to analyze the findings, discuss implications, and provide a summary of the key takeaways from the research. The assignment aims to assess students' understanding of accounting concepts and their ability to critically evaluate research studies.

Managerial
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Different types of cost with example......................................................................................1
2. Best option to purchase the appliances by making sound decision........................................2
3. Cost the couple to launder clothes .........................................................................................3
4. Calculation of additional employee .......................................................................................3
5. Employees need to hire ..........................................................................................................3
PART B............................................................................................................................................4
1. Management accounting system in Canon and Apple computer ...........................................4
2. Process of information creation..............................................................................................7
3. Specific outcomes or lessons from article research................................................................8
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Managerial accounting is the combination of accounting that help to manage the
accounts. It includes number of cost and define the actual income of business organisation. The
manager of the organisation prepares different types of accounts and maintains in order to
increase the productivity. In other words, managerial accounting is process of defining, analysing
and controlling the business activities (Christensen, Nikolaev and Wittenberg‐Moerman, 2016).
It help to control the business by preparing financial statement and recording the transaction. To
understand the concept of managerial accounting Nanna's House has been chosen. As given in
case Douglas and Pamela Frank are married couple and both are worked for railroad company.
After retirement they have decided to start a child care business which name is Nanna's House.
This organisation has managed accounts properly and prepares the accounts that help to prepare
the financial statement. This report will covered different topics such as costs of organisation,
relevancy of information and cost to launder. Moreover, this report will covered management
accounting system and the innovation process in a firm.
PART 1
1. Different types of cost with example
Managerial accounting help to keep records of financial transaction which help to
prepares the financial statement. Managerial accounting design information system that is used
to provide executives with the information for running business effectively. The manager of each
business organisation focuses on cost of organisation and identify the problems in order to get
revenues. Cost accounting is the method which is used to calculate the cost of organisation which
are incurred during business activities. As shown in case study Douglas and Pamela has decided
to run child care business in their homes which is known as Nanna's House. At the time of
running business organisation faced different cost which is discussed below-
Fixed cost: Fixed cost means the cost which remain fixed or constant is known as fixed
cost. The fixed cost does not change according to changes in production. In given case scenario,
Douglas and Pamela has bear fixed cost such as licence cost which does not changes. As it has
licensed fees is $ 225 to maintain and annually licence cost is $3840. This is fixed cost which has
not chances to be increase in number of children are increases. Douglas and Pamela paid license
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fees in order to run a business. The facility is license to care for maximum six children
(Duellman, Hurwitz and Sun, 2015).
Variable cost: This means corporate expense which changes in proportion to
manufacture output. Variable expenses are changes as production changes. It does not remain
fixed or constant. It covers the cost of raw material, finished goods, labour, packaging etc. In
above case there are number of variable expenses such as frank charges and meal expenses
which can be change if production increases or decreases. The frank charge fees is $800 per
month for every child which includes full day care of child. If some one want to extra time to get
take care then has to pay extra charges as decided $15 per hour for each child. Moreover,
Douglas and Pamela provides two time meals and snacks for children. The cost of meals and
snacks is $3.20 per child day. And the maximum capacity is six children to who they provides
meal and snacks.
Semi variable cost: Such cost which remain partially fixed and partially variable is
called semi variable cost. This cost also known as mixed cost which help to define the fixed as
well as variable cost. In given case the variable cost is appliances cost that is $440. Moreover,
the delivery charges are also semi variable charges which is $52 per month. This organisation
has number of option to get delivery of launder clothes. Such as it can accept laundromat
services that includes mileage rate $0.56 per mile. It change according to demand and supply of
products (Hilary and et.al., 2016).
2. Best option to purchase the appliances by making sound decision
Every business concern want to make successful business decision that helps to increase
the productivity and profitability. The person who runs a business organisation analysis the all
income and expenses and evaluate the best option that help to expand the business. Such as
Douglas and Pamela both are married couple and decided to run a business. The Douglas and
Pamela want to make best purchase option who provides number of products and services. As
the cost of old appliance is $440. In given case, there are number of alternative available which
can be adopt bin order to growth of business. According to given case the cost of the cost of old
appliances is $440 and if company purchases this appliances then the total cost is $878.72 which
contains (420+380+ 43.72+35).
6 miles for 4.33 weeks (6*4.33) 25.98 0.56 per mile 14.5488
$8 Per week cost of laundry 34.64
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Cost of detergent or fabric sheer per
month (35/3) 11.6666666667
Total cost of alternative per month 60.8554666667
$
Cost of washer and dryer (420+380) 800
Additional accessories for both
appliances 43.72
Delivering cost 35
Total cost of appliances 878.72
Annual depreciation 109.84
Per month depreciation 9.1533333333
Incremental cost (120+145) 22.0833333333
31.2366666667
According to above calculation it has been concluded that the Douglas and Pamela
should opt second option that means purchasing of appliances will be better option. As by using
old appliances its total cost is 60.855 and by purchasing new appliances its cost will be 31.236
which is less than first cost. Hence, the Nanna's House should purchase new appliance which
will be cost effective.
3. Cost the couple to launder clothes
4. Calculation of additional employee
Employee per hour $9 for $ 40
hours each week
9*4.33 = 38.97 40*4.33= 173.2
In case of additional employee 10*4.33 = 43.3 44.44*4.33= 192.4252
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5. Employees need to hire
In case of 9 children 650+125 775
In case of 14 children Total cost is $5000
PART B
1. Management accounting system in Canon and Apple computer
Management accounting system are the system which is used to prepare the financial
reports and confidential internal reports. The manager of business industry make business
decision by focusing the financial information. Moreover, it considers information for external
users like stakeholders, creditors and public regulatory who takes best decision. These system are
based on management information such as cost reports, budgeting, products cost analysis and
break even analysis that provides financial information. Management accounting system is the
procedure of recognising, gathering, studying, searching and communicating the information that
helps to make efficient business decision (Holzhacker, Krishnan and Mahlendorf, 2015).
Advantages: It help to measure the actual performance of company by comparing with
budget. By maintaining the management accounting organisation can maximize the rate of return
on capital employed. Moreover, it is used to manage better by applying budget and planning.
Disadvantages: This system is depends on financial and cost information which may be
inaccurate. There is highly skilled and qualification person are required who can take effctive
business decision. Management accounting system contains large organisation which need to
arrange high amount of capital.
In above case study Canon, Inc. and Apple Computer has been who apply management
accounting system that helps to run a business effectively. The manager of both organisation are
following the different management accounting system such as-
Cost reliability improvement system: This system is used to focuses on cost which
includes cost of spares, repair, manufacturing, equipment, personnel and warranty cost which
increases the cost of organisation. For example, Canon has introduced a new product which is
Mini copier at low cost. The company analysis the market need and produce that kind of
products. While producing the new product it has considered number of cost such as raw
material, labour, new technology, highly skilled person and acceptable the challenge by
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formulating the new strategy. It focused on cost of product and maintain it properly in order to
make profitable organisation. Where as Apple Inc has launched Macintosh computer which is
cheaper than other. The main object is to reduce the cost by product development. The manager
of Apple Inc has decided to launch new product at low cost that help to run a business. It has
launched Macintosh computer at reasonable cost which attract the customer. Cost improving
system helps to improve the decision such as if the cost of product will be less customer will be
more influenced and will purchase more products. Hence this by applying this system any
organisation can make effective and efficient business decision by reducing the cost of
organisation (Kholis and Maksum, 2017).
Quality control system: This system is used to assure customer receive products free
from defect in order to meet with customer's needs and wants. For instance, Canon company is
multinational company who manufacture number of products and provides better quality of
products. The manager of Canon focuses on cost of products as well as quality of products. For
example, Canon company who manufacture Mini Cannon provides better quality of products. Its
main purposes is to attract the customer by providing the better quality of products.
Apple is well known and international company who maintain the quality of products. It
is discussed in given case that planning stage includes quality assessment and cost assessment
that influenced customer. For example, Apple company who has decided to get new innovation
that is Macintosh computer which will be best quality and will influenced the customers. The
manager of this company focused on quality such as it quality assessment group decided to
provide a benefit of repairing the television sets and provides exhaustive information relates to
television sets. Additionally, it focused on quality standards of charging, exposure, development,
cleaning and fusing. This is good advantages for customer to get repairing of defective products.
Moreover, it give warranty of products that help to attract the customer (Laine, Korhonen,
Suomala and Rantamaa, 2016).
This system will be more beneficial such as if the quality of product will be good then it
will create the customer loyalty and they will switch the products in order to purchase good
quality products. Such as Canon and Apple provides high quality of products that help to attract
the customer. Moreover, Apple provide a benefit to get repairing services of damage products
which affect clients in order to purchase the products.
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Job order costing system: This is a system which help to assigning and collecting the
manufacturing the cost of particular unit of output. This is used in case of number of system are
produced sufficiently different from each other and has different cost. For example, Canon
company match the flow of cost to physical flow of products and services through production
process. It place the material which is collected from suppliers in material storeroom and records
the transaction. The manager of Canon assign the work in different department such as research
and development, marketing department, finance department etc which is used to work properly
and efficiently (Mora and Walker, 2015).
The manager of Apple company also assign the work among different department such as
research and development department visit the market, get needs and wants of customers and
produce the products as customer wants. Marketing department advertise and marketing the
products I order to sale the products and services. The manager of organisation also assign the
work in finance department such as it provides finance to marketing department for advertising
and preparing the reports of products.
By applying this system manager of Canon and Apple can make effective and correct
business decision such as if company will assign the business activities among different
department that will helps to complete the task speedily and in specific manner which will helps
to attract the customers.
Price optimisation system: This is a system which includes mathematical analysis by an
industry in order to state how customers responds at different prices for its products and services
through different channels. Additionally, this method is used to determine the prices that
company will complete the objectives by maximizing operating profit. For example, Canon
began to diversify in office machinery through the development of electronic calculators and
copying machines. As canon was emphasised to retreat from low priced calculator market place.
It uses the prices of products in better way and provides products at low cost. This company
extremely maintain the cost of products and control over excess prices. For instance, Canon
manufactures Mini copier whose initial cost is not more than 200,000 yen which affects the
customers (Nielsen, Mitchell and Nørreklit, 2015).
The manager of Apple organisation also uses price optimisation system that helps to set
the prices of products. As it uses premier prices strategy that help to set the prices of products. It
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keeps high prices because it maintain high quality and also provides repairing services that helps
to attract the customer in order to make profitable organisation.
As pricing is the important strategy which is adopt by all organisation in order to set the
prices of products. The manager makes effective and efficient business decision such as Canon
focuses on pricing strategy that decides from particular prices it should no be more for satisfying
the customer. On other side, In Apple company, the manager also fix the prices of product and
provide high quality of products and services.
2. Process of information creation
Innovation means to introduce a new product and services at market place that helps to
attract the customer. Every business organisation tries to bring new product and new quality of
goods in production process that helps to increase the number of customer. As discussed in case
study Canon and Apple has introduced new product with new features which influenced
customers. In given case, the process of information creation means to bring some thing new
which is based on human activity not on deduction and induction. It emphasis on emergence and
synthesis that helps to produce new products. As MC revitalized a number of other product line
in Canon and Mac became the based upon which Apple rests. The innovating industry need to9
create an environment which will help to lead the information creation and should be structure to
define and transmit the new created information (Nitzl, 2016).
In Canon organisation, manager has decided to innovate new product that is Mini copier
and Apple has decided to innovate the Macintosh which is used to create new information for
Apple in order to manufacture new products. In other words, the American industries creation is
limited for top executives and strategic management group that help to implement the ideas. The
managers transmit the new information down by middle level managers who wanted to see as
information channel not information creators.
Management accounting are helpful in innovation process such as by using management
accounting manager can make decision about whether product will be profitable or not. How it
can control the cost of producing a new product and services. It can be understand through
following example-
In Canon industry, the research manager will analysis the market and get the needs of
customer. After knowing need the manager can take effective business decision such as they
examines whether this project or innovative product will be more profitable or not. By using
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management accounting managers can keep proper records of inventory, raw material, and
financial transaction that helps to calculate the overall cost of organisation. Hence, management
accounting contribute in innovation process of Canon's business activities (Park, Ko, Jung and
Lee, 2016).
The manager of Apple company also uses management accounting in innovation process
such as they set the prices of products and cost of the organisation by including income and
expenses of the organisation. Additionally, it helps to get information about future income by
managing proper accounts of organisation (Pavlatos and Kostakis, 2015).
3. Specific outcomes or lessons from article research
Management accountant is very useful in Australian companies that help to keep records,
analysing, monitoring the cost of organisation in order to define the operating profit. The
accountant prepares different types of budget reports by analysing the financial information. It
provides outcomes such as-
In case of Canon company: The manager of Canon has built the innovation process by
applying management accounting. It helps to make effective business decision regarding raw
material and labour that will help to take correct decision. Such as the manager of Canon has
decided that to innovate new product that is Mini copier which will help to attract the customer.
Moreover, through management accountant help to manage the upcoming risk by analysing the
market. As it assign the cost among different department it accomplished the target by setting the
prices of products and services (Warren and Jones, 2018).
In case of Apple industry the management accountant get the best option out of various
alternatives. Manager maintain the high quality of products and services which help to attract the
customer. Another outcome from management accountant is to increased the production and
profitability situation by formulating cost improvement system (Wynarczyk and et.al., 2016).
CONCLUSION
From the above report it has can be concluded that management accounting is most
useful in every industry in order to maintain records of transaction and financial information. It
also help in innovation process creation for transmit the information. Moreover, this report
covered management accounting system that help to prepare budget reports and financial
statement for obtaining maximum profits and productivity. Management accounting also help to
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calculate the cost of overall expenses and incomes which are incurred during business activities.
The manager of the organisation perform various function in order to complete the targets and
attain goals.
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